Telemasters HoldingsJSE:TLM 64 ROA % is 1.42% as of Dec. 2025, which is 14% below its 10-year median of 1.66. GuruFocus rates JSE:TLM with a GF Score™ of 64/100 and a GF Value™ of R1.10 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 368 Telecommunication Services companies, Telemasters Holdings ranks worse than 60.33% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Telemasters Holdings's annualizedNet Income for the quarter that ended in Dec. 2025 was R0.77 Mil.
Telemasters Holdings's average Total Assets over the quarter that ended in Dec. 2025 was R53.92 Mil. Therefore, Telemasters Holdings's annualized ROA % for the quarter that ended in Dec. 2025 was 1.42%.
The historical rank and industry rank for Telemasters Holdings's ROA % or its related term are showing as below:
JSE:TLM'
s ROA % Range Over the Past 10 Years
Min: -7.02 Med: 1.66 Max: 6
Current: 1.33
During the past 13 years, Telemasters Holdings's highest ROA % was 6.00%. The lowest was -7.02%. And the median was 1.66%.
JSE:TLM's ROA % is ranked worse than 60.33% of 368
companies
in the Telecommunication Services industry
Industry Median: 2.775
vs JSE:TLM: 1.33
Telemasters Holdings (JSE:TLM) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is two times the semi-annual (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 2025) revenue data.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Telecom Services subindustry, Telemasters Holdings's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Telemasters Holdings ROA % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Telemasters Holdings's ROA % distribution charts can be found below:
* The bar in red indicates where Telemasters Holdings's ROA % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is two times the semi-annual (Dec. 2025) net income data.
ROA % is displayed in the 30-year financial page.
Telemasters Holdings (JSE:TLM) has a ROA % of 1.42% as of Dec. 2025. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Telemasters Holdings and its competitors. This is 14% below median its historical median of 1.66. According to the industry distribution chart, Telemasters Holdings ranks #222 out of 368 companies in the Telecommunication Services industry, placing it in the top 60.3%.
Is Telemasters Holdings' ROA % too high?
Telemasters Holdings' current ROA % of 1.42% is 14% below median its 10-year median of 1.66. The Telecommunication Services industry median ROA % is 2.78. Telemasters Holdings' value of 1.42% is 48.8% below this industry median. Based on the distribution chart, Telemasters Holdings ranks #222 out of 368 companies in the Telecommunication Services industry, which is below the industry midpoint. Overall, Telemasters Holdings has a GF Score™ of 64/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Telemasters Holdings' ROA % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Telemasters Holdings ranks #222 out of 368 companies for ROA %. This places Telemasters Holdings in the lower half of its industry. The industry median ROA % is 2.78. Telemasters Holdings' value of 1.42% is 48.8% below this benchmark. While the company's 10-year median is 1.66 vs. the industry median of 2.78, Telemasters Holdings has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROA % for a Telecommunication Services company?
The median ROA % among Telecommunication Services companies is 2.78, based on 368 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Telemasters Holdings's current ROA % of 1.42% is 48.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Telemasters Holdings and its competitors. For the Telecommunication Services industry, the median ROA % is 2.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Telemasters Holdings's current ROA % is 1.42%, which is 14% below median its own 10-year median of 1.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Telemasters Holdings stock overvalued right now?
Based on GuruFocus' analysis, Telemasters Holdings (JSE:TLM) is currently considered Modestly Overvalued. The stock's GF Value™ is R1.10, compared to a current price of R1.30 — trading 18.2% above its estimated fair value. The current ROA % is 1.42%, which is 14% below median its 10-year median of 1.66 and 48.8% below the Telecommunication Services industry median of 2.78. Telemasters Holdings' overall GF Score™ is 64/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Telemasters Holdings (JSE:TLM), the current ROA % is 1.42% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Telemasters Holdings (JSE:TLM) Overvalued in 2026?
Based on GuruFocus' analysis, Telemasters Holdings stock appears to be overvalued.
The current stock price of R1.30 is trading 18.2% above its estimated GF Value™ of R1.10.
GuruFocus considers Telemasters Holdings to be Modestly Overvalued.
Key valuation signals for JSE:TLM:
ROA %: 1.42% (14% below median its 10-year median of 1.66)
GF Value™: R1.10 vs. price of R1.30 (18.2% above fair value)
Industry Position: 48.8% below the Telecommunication Services median (#222 of 368)
No single metric tells the full story. See the JSE:TLM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Telemasters Holdings Ltd is a diversified technology investment company. It provides comprehensive telecommunications services including internet connectivity, cloud solutions, and data storage tailored for businesses across South Africa. The company's reporting segments are: ICT Managed Solutions, Data Centre Services and Corporate. It generates the majority of revenue from the ICT Managed Solutions segment, which provides i) ICT managed solutions to medium and small enterprises through a comprehensive suite of products and services focused on digital connectivity and ii) Data Centre Services.
64GF Score
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